Dogecoin (CCC:DOGE-USD) can definitely rally. Its potential is especially potent when cryptocurrencies in general have strong momentum. However, I have a hard time getting behind an asset that doesn’t have any substance behind it.
Dogecoin was introduced in late 2013 and began as a joke. A joke. I have a hard time getting behind something like that, even if it has the potential to appreciate over any particular time frame.
That’s particularly true because there are better crypto assets in play at the moment, even though JPMorgan (NYSE:JPM) CEO Jamie Dimon recently called Bitcoin (CCC:BTC-USD) “worthless,” adding that it has “no intrinsic value.” Eventually regulators will clamp down on Bitcoin, he said.
Many people disagree with Dimon, but that’s beside the point. Let’s look at three cryptos that are more attractive than Dogecoin.
It’s not the glamorous pick and yes, it’s the obvious one. But if we’re looking for cryptocurrencies to own over the next ten years, it’s hard to avoid the biggest of them all.
After its recent rally, Bitcoin currently commands a market capitalization above $1 trillion. While it wasn’t created with the most practical intentions — like transaction speed — its goal of becoming a “store of value” has panned out well.
The decentralized digital currency has seen its value explode over the years, outpacing traditional currencies, gold, inflation, stocks and seemingly everything else. I can’t imagine a future where cryptocurrencies are thriving and Bitcoin is struggling to survive.
Tesla (NASDAQ:TSLA), Square (NYSE:SQ), Microstrategy (NASDAQ:MSTR) and plenty of other major companies already have Bitcoin on their balance sheets. If several other firms do the same thing, Bitcoin’s value is likely to increase meaningfully.
Weighing in as the second-largest cryptocurrency, Ethereum (CCC:ETH-USD) has eclipsed the $400 billion market capitalization mark.
It was not created to be a store of value, but it has done an incredible job of becoming one. The asset’s price has risen massively over the last few years, resulting in more practical applications being created for the currency.
Ethereum is already capable of facilitating faster transactions than Bitcoin. That alone makes Ethereum more practical. However, the launch of Ethereum 2.0 will increase its speed even further. The update also promises to convert the current coin from a proof-of-work system to a proof-of-stake system. That change will ultimately cut back on the energy spent to mine the currency and improve its network speed.
Ethereum is driving the NFT market at the moment as well. Whether you believe in the NFT market or not, it’s here, and transactions that utilize NFTs are taking place. These transactions are occurring in Ethereum.
Last but not least, Ethereum is capable of smart contracts. Such deals can automatically unlock funds once a specific contractual obligation is met.
All of these practical uses, combined with the store-of-value catalyst, should make Ethereum an attractive investment if cryptocurrencies maintain their momentum. At the very least, Ethereum seems more stable than Dogecoin.
Cardano Over Dogecoin
Last but not least, we have Cardano (CCC:ADA-USD). One might argue that Dogecoin has a stronger brand name than Cardano. At least generally speaking, that’s likely true. However, that doesn’t mean Dogecoin is a better investment.
Like Dogecoin though, Cardano is a relatively speculative cryptocurrency and trades with a low price tag. Cardano is currently trading just over $2.16, while Dogecoin is changing hands for just under 23 cents.
Cardano is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies.
Charles Hoskinson founded Cardano, after he was a co-founder of Ethereum. Like Ether, Cardano is capable of carrying out smart contracts, and both have many positive building blocks in their foundations.
While there are certainly more well-known and more expensive cryptocurrencies, Cardano, for its price, is a good alternative to Dogecoin. Cardano hasn’t recently rallied like Bitcoin or Ethereum and could give bulls an opportunity to generate higher profits.
That said, keep in mind that Cardano is one of the more speculative names on the list.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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